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Performance Leadership

Performance Leadership
Karen Moustafa Leonard, PhD

Professor of Management, College of Business,


University of Arkansas Little Rock

Fatma Pakdil, MBA, PhD

Professor of Management, Department of Business


Administration, Eastern Connecticut State University,
Willimantic

the series on The Managers Toolkit

Performance Leadership
Copyright Business Expert Press, LLC, 2016
All rights reserved. No part of this publication may be reproduced, stored
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of the publisher.
First published in 2016 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-63157-013-1 (paperback)
ISBN-13: 978-1-63157-014-8 (e-book)
Business Expert Press Human Resource Management and Organizational
Behavior Collection
Collection ISSN: 1946-5637 (print)
Collection ISSN: 1946-5645 (electronic)
Cover and interior design by S4Carlisle Publishing Services Private Ltd.,
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First edition: 2016
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Printed in the United States of America.

Dedication
This book is dedicated to my husband, John, and to my children,
Mark, Sara, and Danny, who had to put up with an erratic
schedule to allow my completion of the book. Their support was
unflagging, and Johns assistance in reading drafts of the book
helped make it more useful to managers. My late husband
Esam and my parents encouraged me to achieve
my dream of writing.
Karen Leonard
To my father and mother, Enver Beiktepe and Enbiye Beiktepe,
who taught me how to become successful in this life...
Fatma Pakdil
This book is an outcome of our long, dedicated collaboration
between the two of us. Since the summer of 2005, we have
published articles and developed grants. But, we had
not written a book together...
This book is a platform where we brought our knowledge and
experience together, and we enjoyed the challenge of being in
different places (sometimes traveling in different countries)
while working on the book. This was not designed as a textbook,
but instead as useful information to practicing managers,
while providing some of the theoretical background
that allows understanding and further development of these ideas.
We hope that the ideas in this performance system are as useful
to you as the ideas have been to us as practicing managers and,
now, as academics.

Praise for Performance


Leadership
Performance Leadership offers a very practical guide to systematically
managing performance. Viewing performance as a key component of
leadership is very important. Performance Leadership as a system offers
a very holistic approach to both people and organizational performance.
When staff can see their work as part of the goals of the larger organization
engagement increases. The concepts in the Performance Leadership
System are key to building measurable success for both the business and
the individual.
Tamidra Marable,
Manager of Talent Development, Heifer International
I was tasked with performing an audit of all organizational job
descriptions and job functions. I had not performed a bare bones look
at job descriptions and functions in years. Performance Leadership was a
great resource for me to use while I was going through this process.
Erika Hadley,
Human Resource Director, Arkansas Food Bank
I like the idea of the book which will reach managers in their work
environments. The stories illustrate the points. It is indeed critical in any
performance system to create a culture of psychological safety if it is
to be successful. I like the sections on why the Performance Leadership
System is superior.
Jim Segovis,
Director of Honors Program and Associate Professor of Management,
Bryant University (Rhode Island)
I foundmany valuable insights and conceptsoutlined inPerformance
Leadership: Performance Leadership 1.0. For example, the concept of
ensuring those employees work descriptions and tasks are aligned with
the companys overall strategy and that the strategy is communicated to
employees can help keep employees focused. Another interesting point
was the insight of assessing the performance of the employee based on
tasks that are really important for the position instead of applying the
same measurement stick to all positions. I think that the outlined strategy
will be a very successful approach to performance leadership.
Rachele Cox,
MBA, Ph.D. Candidate, Lead Engineer

If you, like many, find performance management frustrating and


difficult, join the club! This book will help you navigate the land mines
and teach you simple and effective ways to manage performance for your
organization.
Michael B. Belanger,
District Human Resource Manager, Home Depot
I believe it was Eleanor Roosevelt who once said, Better to light a candle

than stay in the dark. Well, Karen and Fatma have shed a bright LED
light on Performance Leadership that, in addition to providing clarity on
this important topic, they have produced a great resource and a tool box
that would also stand the test of times.
In my 33 years of practicing HR, I have had the unenviable task of being
on the front seat of witnessing my fair share of bad acts of leadership
in managing employee performance. I have watched the extremes of
both spectra of this important discipline. It runs the gamut of displaying
indifference and lackadaisical to I am going to whip this person into
shape and fix them attitude by the leader.
Whether it is passivity that is displayed or a sense of what I would call an
aggressive and over zealousness on the part of the leader, it is obvious that
neither of these two extremes are effective or represent the right solution.
The authors premise in this book resonated with me as they based their
approach on a foundation of Leadership first and Performance second
as reflected in the title. Truly, you cannot have an effective performance
management system where nominal leadership exists. John Maxwell
said, Leader is the person who knows the way, goes the way and then
shows the way. A robust performance management tool box and
process without a leader who does not possess that mindset are futile.
In addition to addressing the leadership imperatives, Karen and Fatma
have introduced incredible amount of resource materials, charts, practical
steps, and processes to equip the reader with a robust tool box that can
be implemented in any organization regardless of size to produce result
and getting things done through other people. As aptly pointed out in the
book, leadership without the ability to get things done is useless.
I enjoyed reading this book and gained valuable insights. I highly
recommend it. Good reading.
Mo Amani,
Vice President, Human Resources,
Regional, Performance Foodservice

Abstract
A daunting aspect of management is the performance appraisal. It
has become a byword for unfairness and irritation among employees.
Some management writers are even proposing in doing away with it.
We agree that the current method of appraisal is unsustainable and
counterproductive.
In this book, we discuss Performance Leadershipthe idea of leading employee performance, which should be the focus of management.
Just doing appraisal or evaluation is not enough. Managers must incorporate the entire model of performance management and use it to lead
within their workgroup, department, or organization.
We walk managers through the steps of Performance Leadership,
discussing the benefits and pitfalls of each step. The idea of making performance management work as a leadership style is new and simple, but
it takes dedication to complete the task.
This book is valuable for supervisors, managers, human resource staff,
and othersanyone who needs to manage performance!

Keywords
employee appraisal, employee evaluation, feedback, goal setting,
human resource management, leadership, management, management
skills, managing employees, performance management, SMART goals,
SMARTER goals, supervision, top management team support

Contents
Introduction.........................................................................................xiii
Chapter 1 How Is Management Success Created?...............................1
Chapter 2 What Is Performance?......................................................21
Chapter 3 Are Job Analysis and Job Design Really
Necessary?........................................................................33
Chapter 4 How Are Job Descriptions and Job
Specifications Created?.....................................................47
Chapter 5 Why Use Goal Setting?....................................................69
Chapter 6 What Is the Performance Appraisal Process?.....................79
Chapter 7 Why and How Should Feedback Be Given?.....................95
Chapter 8 What Are Major Issues In Performance Leadership?.....109
References............................................................................................119
Index..................................................................................................131

Introduction
Performance Leadership is our term for leadership that creates an environment for excellent performance. This is achieved using the Performance
Leadership System, a system of performance management that is clear, focused, and easy to use. Without the Performance Leadership System, actual
Performance Leadership will not occur. They are interconnecting concepts.
One particular aspect of leadership style in this book is a part of the Follett
Principle: Power with people is much more effective and efficient than power
over people (for more information, see http://www.newworldencyclopedia
.org/entry/Mary_Parker_Follett).

In considering the practical aspects of management, leadership, and


performance management, we thought of our own experiences as practicing managers. Therefore, the chapter titles and subtitles are questions,
where we try to give the answers that we wished we had known when we
began our career as managers. The eight chapters are:
1. How Is Management Success Created?
2. What Is Performance?
3. Are Job Analysis and Job Design Really Necessary?
4. How Are Job Descriptions and Job Specifications Created?
5. Why Use Goal Setting?
6. What Is the Performance Appraisal Process?
7. Why and How Should Feedback Be Given?
8. What Are Major Issues in Performance Leadership?
The terms management and leadership are used in this book, and both
are essential to the running of any department or organization. There is
actually some controversy as to whether leadership is a part of effective
management, and vice versa!
The difference between leadership and management has been described as similar to the difference between a grape and a raisin: a manager

xiv INTRODUCTION

without leadership skills is missing a vital part of effectiveness, as the raisin is missing water (Perrin, n.d.). Leadership without the ability to get
things done is useless; management that is totally task driven without any
concern for the employee is useless, too (Whetten & Cameron, 2016).
The person in charge of a department is generally given the title of
manager, so we use this term to refer to the many different designations
that occur in organizational life: director, manager, leader, supervisor,
chairperson, chief x officer, etc. Other terms that you might notice is the
use of he and she, him and her interchangeably. The convention of he as
gender neutral has met with considerable opposition.
The book is straightforward and somewhat detailed, so that each manager can create the commitment and time necessary to create exceptional
Performance Leadership. Exhibits include templates and examples of their
use. Research findings are discussed, and a reference list is provided, so that
managers can explore any of the performance aspects further, if they wish.
Employee and manager perspectives are offered with real-life
problems that managers should be able to handle after reading the book.
These examples are from actual events, although the names have been
changed to protect both the innocent and the guilty. The examples allow
us to demonstrate common forms of management problems and some
possible solutions. They are straw men in the sense that they provide
an opportunity to practice solving problems that most of us encounter
during the actual practice of management and leadership.
Many people helped inspire the book, including students, managers,
subordinates, and colleaguestoo numerous to mention here. In particular, our thoughts were heavily influenced by the writings of Herman
Aguinis, Professor of Management at the Kelley School of Business in
Indiana University, and those of Wayne Cascio, Distinguished Professor
of Management at the University of Colorado Denver.
We wish to thank the academics and practicing managers who
provided excellent feedback on the book. Their suggestions were of the
highest quality, making our book much better for their reviews. They
were (in alphabetical order):
Mr. Mo Amani, Vice President, Human Resources, Regional,
Performance Foodservice

INTRODUCTION
xv

Mr. Michael Belanger, District Human Resource Manager, Home


Depot
Ms. Rachelle Cocks, MBA, PhD Candidate in Management, Lead
Engineer
Ms. Erika Hadley, Human Resource Director, Arkansas Food Bank
Ms. Tamidra Marable, Manager of Talent Development, Heifer
International
Dr. Ozlem Ogutveren-Gonul, Assistant Professor of Entrepreneurship,
Drexel University
Dr. Elizabeth D. Scott. Professor of Business, Eastern Connecticut
University
Dr. James C. Segovis, Director of Honors Program, Assistant Professor
of Management

For more information or for consultation, please contact Performance


Leadership Consultants at PerformanceLeadership.TM@gmail.com.

CHAPTER 1

How Is Management
SuccessCreated?
Management style [means] a manager gives clear directions and
actually stays pretty hands-off, but is ready and available to jump
in to offer guidance, expertise, and help when needed. (http://www
.forbes.com/sites/dailymuse/2014/10/16/how-to-answer-whats-yourmanagement-style/)
Leadership is less about your needs and more about the needs
of the people and the organization you are leading. Leadership
styles...should be adapted to the particular demands of the
situation, the particular requirements of the people involved, and
the particular challenges facing the organization. (http://guides.wsj
.com/management/developing-a-leadership-style/how-to-develop-aleadership-style/)

From the employee perspective: Sallys1 stomach was full of butterflies.


Annual review time, she thought. Once again, someone who knows
nothing about my job will try to tell me what Im doing wrong. When
can we stop pretending that this is doing any good?
From the manager perspective: John looked at the calendar and sighed.
Twenty performance appraisals due to the human resource department in
a week. In the cafeteria, he saw Alicia, and sat with her to eat his sandwich. I just dont know how Im going to get all of those appraisals done
in time, he said. I have to do all of the measurements, write the evaluation, and then talk to each employee, added to my regular duties that

PERFORMANCE LEADERSHIP

already keep me working overtime. How have you managed over the 10
years youve been here?
It is the training that they gave me, but they dont do it any longer.
Performance leadership is a comprehensive, organization-wide management system, and appraisals are just a part of the whole system, Alicia
replied. All managers need training on the entire system, not just on how
to do appraisals.

Why Are Management and Leadership Styles an Issue?


How managers approach employees is important. At its essence, management style is an exhibition of the attitude that the manager has
toward the employees and the goals of the department and/or organization.2 Management style is demonstrated by the way that the manager
treats employees and the work activities of the department or organization.3 It might be formal, democratic, paternalistic, participatory, or
other styles suitable to the way that the manager views the employee
group and the goals to be achieved. It is rarely defined in the research,
but many of the general books and textbooks on management use this
phrase in this way.
Management styles vary, and some are dependent upon the situation.
Unfortunately, this often leaves employees uncertain about their level of
performance or their status in regard to continuing employment. Some
managers are aggressive, believing that employees are lazy and looking
for ways out of work. Others believe that employees are willing to work
and they need direction to be successful. One of the most successful ways
to manage employees is to be concerned about their welfare and to point
their effort toward goal achievement, rather than micromanaging them.4

Why Should Performance Leadership


Be a Management Style?
Performance Leadership as a leadership style is a new concept presented
in this book. When concentrating on Performance Leadership, the managers focus is on achieving departmental and organizational goals and in
dealing fairly and equitably with employees. This is, in essence, the job

HOW IS MANAGEMENT SUCCESS CREATED?

of the manager. Making it a style allows the concentration of focus on


behaviors that are directed toward goal achievement. When concern for
employees well-being is added to this, it is a management combination
that designates a person as a top manager and leader.5
Using this style allows the employee to determine the force, direction,
and persistence of effort. A consistent Performance Leadership style, as
perceived by the employee, will prevent employees from losing focus on
the departmental or organizational goals and help them deal with uncertainty.6 Poor management and leadership styles leave employees feeling
powerless,7 resulting in negative employee behaviors in the workplace
that are seen by employees as the appropriate method of retaliation for
bad management.8 This happens when managers and leaders see their
subordinates as lazy and unwilling to contribute (Theory X managers/
leaders).
McGregor9 identified two types of managers: those who believe in
Theory X and those who believe in Theory Y. Theory X suggests that
workers are lazy and unwilling to work, making the control and command system of management essential to management. Theory X managers try to constrain subordinate performance within the so-called bell
curve; that is, a few need to be rated 1 and 5, a few more rated 2 and 4,
but most should be rated as 3, for average performance. Of course, many
do not know what actual ratings look likethey are ranking the employees, not rating or evaluating their performance.
This is a game that is played in many organizations by the top management team. To have an excellent organization, you must have excellent
people. But excellent people may require raises, which the organization
cannot afford. This is the catch-22 for managers, when the top management wants to play chicken managementusing a poor evaluation as a
reason not to give a raise. It is better to be honest with the evaluations,
even if the raises across the board must be smaller.
McGregor suggested another theory, which he called Theory Y: People
enjoy work and will be committed to meaningful work if treated well
and rewarded with higher level rewards such as praise and recognition
not just money. Mary Parker Follett identified power with people as being
much more effective than power over others.10 Having a strong focus on
goals prevents the employee from thinking that the manager has power

PERFORMANCE LEADERSHIP

over her. Instead, a Performance Leadership style stresses that everyone is


needed to make the organization work.
The Performance Leadership style uses the concepts developed in
this book as a way to manage goals and employee accountability. When
goals are set with the employees, it is possible to monitor their success and their constraints within the work environment. Employees also
begin to understand the role that their tasks and duties play in achieving broader departmental and organizational goals. The emphasis in the
Performance Leadership style is on employees as capable, competent
(efficient and effective) adults with the ability to decide the amount of
effort to provide, how to direct their efforts, and how long to provide the
effort. Being able to understand and use Performance Leadership as a
personal style and the Performance Leadership System as a management
tool is a valuable and needed skill for all managers in every industry as
well as every nonprofit organization. In the next chapters, the steps in
using the Performance Leadership System to pursue Performance Leadership are discussed in detail, with exhibits and examples to demonstrate
their use.

Why Use the Performance Leadership System?


Managing performance is the primary job of managers. It requires
measurement.
Over the years of our work in industry and academia, managers and
employees have said that they dread employee evaluations. In searching to find out why, we find that research and practice show that often
managers and employees see the evaluation as a time for gotcha, where
employees report that they feel that evaluation is simply a way to find
their mistakes, not their successes.11 This is why gotcha management
is used in this book as a phrase for a management style consisting of
finding mistakes at the end of the year, without helping employees
during the year to overcome them.
Improving employee performance requires employees throughout the organization accepting responsibility for achieving organizational objectives, managers having complete confidence in

HOW IS MANAGEMENT SUCCESS CREATED?

their subordinates, information flowing effectively throughout the


organization, and employees receiving honest task and performance feedback in short cycles.12
One study13 found that only 3 out of 10 employees said that their
evaluation helped improve their performance. Many employees believe
that managers use it as an excuse not to give raises, even when they are
deserved. Others find the process humiliating and embarrassing, particularly those being measured by a manager and a system that they consider illogical, inconsistent, contradictory, unscientific, or uncaring.14
Culbert15 reflects this feeling when he writes in the Wall Street Journal:
...I see nothing constructive about an annual pay and performance review. Its a mainstream practice that has baffled me
for years. To my way of thinking, a one-side-accountable, bossadministered review is little more than a dysfunctional pretense.
Its a negative to corporate performance, an obstacle to straighttalk relationships, and a prime cause of low morale at work. Even
the mere knowledge that such an event will take place damages
daily communications and teamwork (authors italics).
However, managing performance means managing behaviors. Failure to
deal with substandard performance or problem employees causes disruption, so dealing with the behaviors is essential. Otherwise, decreases in
productivity and morale will occur, which will be reflected in the organizations bottom line.16 On the other hand, failure to encourage highperforming employees can also cause drastic reductions in productivity
and morale.
The solution is the simple, but effective, Performance Leadership
System. Research shows that 86 percent of firms are not happy with
theircurrent performance management systems. Many, instead, are trying to avoid them or are focusing on software, measurement, and rating
systems, which have not demonstrated any improvements in performance
or productivity.17
The Performance Leadership System, correctly instituted, allows
managers to manage and guide employees to benefit the organization.

PERFORMANCE LEADERSHIP

An effectively working Performance Leadership System benefits not


only the organization but also the employees in the short and long
term. It uses research developed by those working in performance management, where such benefits have been shown.18 The System requires
ongoing analysis, design, identification, measurement, and alignment of
tasks and duties to organizational and departmental strategic goals.19 An
effective system outlines performance responsibilities, identifies employee
contribution, engages employee motivation processes, and provides valid
input to many decisions about employees, such as pay, promotion, and
discipline.20 In some organizations, managers are given a different set of
goals than the employees. This book is based on the belief that if everyone
worked from the same goal set, negative perceptions of performance and
hierarchy (us vs. them) could be avoided.
In this book, the process of managing performance using the Performance Leadership System is thoroughly described. This is not a textbook; instead, it is a practical book designed to make the Performance
Leadership System readily available to managers. The best textbook
on managing employee performance is Performance Management, by
Herman Aguinis (2013), used in countless classrooms all over the world.
Performance Leadership is an interesting topic, but there are a lot of
issues surrounding it that get missed in day-to-day leadership and management work. The entire system is covered in this book from beginning
to end, but the only way to successfully manage performance is to use
the entire systemnot just parts of it. There are many areas where the
Performance Leadership System can correct critical problems. Even
the Baldrige Performance Excellence Program21 has several sections on
employee performance management requirements conforming to this
System.
However, most performance management systems are incorrectly designed. Quick fixes and fads are numerous in popular management literature and support countless consulting firms. Employee evaluations have
been used solely for personnel decisions instead of its true purpose: assessment and modification of the direction of employee and management
effort.22 Organizations do not usually reward the use of this information
by managers, but it seems an easy way for goal-oriented managers to gain
performance improvements quickly by using them as goal achievement

HOW IS MANAGEMENT SUCCESS CREATED?

measures. The improved performance and productivity will be an important part of managers evaluations!
This book does not discuss fashions and fads in appraisal/evaluation
that come and go. Instead, we focus on the process of creating and sustaining the Performance Leadership System that leads to improved
performance and a Performance Leadership style. The entire System
is explained in language that is free of jargon, giving step-by-step processes. Skipping steps in the Performance Leadership System will neither
benefit the manager nor the employees.19 Instead, it will set up unfulfilled
expectations that create distrust.
Effective systems can prevent discontent, turnover, neglect of the
job, apathy, and lawsuits because the processes and distributions are
transparent.20 Our performance management system is designed to be:
...associated with an approach to creating a shared vision of
the purpose and aims of the organization, helping each employee
understand and recognize their part in contributing to them,
and in so doing, manage and enhance the performance of both
individuals and the organization.23

Why Bother with Analyzing and Measuring Job


Performance?
The primary job of any manager is to manage performance to be sure
that organizational, departmental, and/or subdivisional goals are met.
Many managers say that they do not receive good performance from their
employees.
The focus of leadership and management is achieving goals
through working with other people. If goals are not being achieved, then
employee performance must clearly be modified toward current, needed
goal achievement instead of outdated, irrelevant goals.25 If performance
is not at the level needed, then expectations should be raised and clearly
identified.
Amazing things have been done when expectations were raisednot
raised to unreasonable or unfair expectations, but to achievable ones.
Often, failure in goal achievement is not the fault of the employee but

PERFORMANCE LEADERSHIP

of the manager, when she fails to provide mentoring and coaching and
is unclear about goals, outcome expectations, resource availability, environmental constraints, timeliness, and consequences. These issues are
discussed throughout the book.
Coaching and mentoring are two different processes. The British
Chartered Institute Personnel and Development24 provides one of the
clearest definitions of the differences between the two. Coaching involves
a focus on employee skill development and goal achievement, usually for
a short time or as part of a management style. Mentoring is more involved, having social as well as organizational effects. The mentor shares
the knowledge of the organization and its workings with the protg.
Often, the protgs progression through the organization is the major
focus of the mentoring relationship. Managers rarely make good mentors
for their subordinates; the nature of the relationship is different.
Managers should coach rather than judge when implementing the
Performance Leadership System. This requires managers to shift their
supervisory role from judge to coach. Employees feel supported by managers and more secure in their positions when they know that managers are more focused on improving and developing the performance of
employees than in judging and criticizing. However, this is achieved
only when supported by an organizational culture/work environment
that encourages self-management.
If performance is not measured and assessed, it is not possible to
determine whether goals are even met. Goals can be extremely powerful,
when the goals are clear. This has become very clear in the area of terrorism; with powerful goals, things thought impossible can be achieved,
such as the use of four large jetliners to create havoc in the United States.
(Goal setting is discussed in Chapter 5.)
Peter Drucker, one of the leaders in the management field in the
1900s, believed that measuring performance is important:
Work implies not only that somebody is supposed to do the job,
but also accountability, a deadline and, finally, the measurement
of resultsthat is, feedback from results on the work and on the
planning process itself.25

HOW IS MANAGEMENT SUCCESS CREATED?

Drucker also said, Your first [management] role...is the personal


one, Drucker told Bob Buford, a consulting client then running a
cable TV business in 1990. It is the relationship with people, the
development of mutual confidence, the identification of people, the
creation of a community. This is something only you can do. Drucker
went on, It cannot be measured or easily defined. But it is not only a
key function. It is one [function] only you can perform.26
A major part of Performance Leadership is goal setting and measuring
progress toward those goals, discussed in Chapters 5 and 6. The Performance Leadership System allows managers to set performance goals with
their subordinates, measure progress and performance, create strategies
for improvements, and provide feedback. When most people talk about
performance management, employee evaluation/assessment, or worker
assessment, they really mean the measurement of performance. This is
a fundamental part of Performance Leadership, but it comes only after
creating an entire system.19
The use of the term performance appraisal refers to the process of
measuring performance to help in the Performance Leadership System.
It is not an entire system on its own. Performance appraisals are usually
viewed as punitive, with a lot of negative connotations based on past
treatment or perceived unfairness in the workplace and its culture.27
Performance appraisals can be destructive if the performance appraisal
system does not have objective criteria and fair procedures.27 To overcome the potential destructive effects of performance appraisals, the
organization should implement fair appraisal procedures that contain
objective and measureable performance criteria.28
Managers dread telling employees that their work is substandard or
that improvement is needed. They really just want to get it over with.
Often they are concerned that the employee will take the criticism poorly.
And employees are likely to react badly to criticism when they view the
criticism as subjective and destructive, feel that their performance is
poorly measured, or receive feedback unrelated to the reality that they
face in the workplacesuch as a lack of resources to do the job well.
Some managers enjoy the yearly evaluation process for a negative reason: they see it as an opportunity to jerk the employees up a notch,

10

PERFORMANCE LEADERSHIP

which they consider motivating. This attitude is in reality poor (gotcha or


chicken) management.

Are Performance Appraisals Needed in the


21st-Century Workplace?
Yes, they continue to be critical to organizational and departmental goal
achievement and overall success. Some people want to abolish performance appraisals altogether.29 Eliminating the management style that
uses performance appraisals without a performance system, such as the
Performance Leadership System, is advised!
But effective and efficient management and leadership requires use
of the Performance Leadership System, including measurement.25
Edward Deming, the major designer of quality improvement, strongly
believed that performance appraisal, when done poorly, is demotivating,
leaving people unfit for weeks after receipt of rating, unable to comprehend why they are inferior.30 In fact, Culbert31 heavily criticized performance appraisals in the Wall Street Journal Online:
This corporate sham is one of the most insidious, most damaging, and yet most ubiquitous of corporate activities. Everybody
does it, and almost everyone whos evaluated hates it. Its a pretentious, bogus practice that produces absolutely nothing that any
thinking executive should call a corporate plus.
Happy workers are not always productive workers. However, productive workers performing well in jobs that have meaning are generally content and satisfied with the organization and the work, which
results in better retention of valued employees.32 Productive workers
are clear about their purpose within the organization and how their
own goals parallel those of the organizations and departments where
they work.33
The key is in understanding each employees motivation to come
to work and aligning those goals with departmental and organizational
goals.34 It also requires that working conditions and pay be incentives,
not disincentives, as described by Hertzberg,35 and since then by many

HOW IS MANAGEMENT SUCCESS CREATED?

11

other researchers. When working conditions are poor and interfere with
job performance and when pay is below the norm for the job (as judged
by the employee, not the manager), they create reasons for employees
to be unsatisfied with their job, which reduces employee motivation.
All managers want employees that are highly motivated, engaged,
and productive. But this is challenging, because motivation is an internal
process, influenced by many things over which the manager has no control. Money doesnt motivate everyone. It is a particularly poor motivator
for those who are committed, paid appropriately (in their judgment),
and high-performing employees already. In some industries, including
healthcare and academia, financial rewards are extremely limited. Also,
employee performance, especially at higher levels, such as manager, pro
ject manager, and top management team, is difficult to observe. Monetary incentives are the baseline, but there are many factors affecting an
employees motivation level, reflective of their personalities and personal
expectations. Mo Amani, one of our reviewers, suggested that if a person
is unwilling to be interested or if the person does not fit well into the
organization, they are unlikely to motivate themselves to achieve goals.
A further negative component of many workplace performance
appraisals is the assumption that higher level employees do not need
supervision in the same manner as lower level employees. There might
also be the perception that lower level employees are totally motivated
by money and must be watched constantly to ensure their performance.
This view of workers is held by managers who believe in the Theory
X management style, which has been found to be detrimental to high
performance.9 It should also be noted that feelings about evaluation
are affected by how we have been evaluated and treated since entering
the workforceeven since childhood. However, evaluations should be
based on (1) facts, (2) data that are collected in a specified manner over a
specified time, and (3) specified measurement systems, as demonstrated
in the Performance Leadership System.

But How Do We Get Appropriate Measurement?


How do we know what the employees are supposed to be doing and
whether they are doing it correctly? The only way to obtain appropriate

12

PERFORMANCE LEADERSHIP

measurements of performance is to create a reliable, valid, and respected


performance measurement system, as shown in Exhibit 1.1. One of the
best definitions of reliability and validity is given on the University of
Southern Florida website36:
Validity refers to the accuracy of the assessmentwhether or
not it measures what it is supposed to measure. Even if a test is
reliable (consistent), it might not provide a valid measure.
An example might be a bathroom scale that registers your weight at
150 pounds every time you step on it, even though you know that your
weight is 130 pounds. The scale is reliable (consistent), but it is not valid.
A respected system is one that is highly esteemed by those using it and
affected by it.37
As you can see, the system doesnt start with job analysis, but with
vision, mission, and goal setting at the organizational and then departmental level. Before job analysis can begin, the manager must be sure
that the vision and mission of the organization are clear to him and to his
employees. Goals are set from the vision and mission of the organization,
and the department then sets goals based on the organizational goals.
Without this step, the rest will not work as well.
Following the vision, mission, and goal setting is job analysis.19
Job analysis allows both the manager and employee to understand
the elements of the job. Notice that it is both manager and employee
who must understand the job elements. The next step in the system involves job design. The third step is creating an appropriate job description followed by a job specification. Using the Performance Leadership
System requires that both the manager and employee who performs
the job work together to create the tools for measurement. Only then are
we ready to create the performance evaluation or appraisal tool and set
goals. The last step is feedback, which includes development planning.19
Exhibit 1.1 illustrates the steps in the system and how they fit together
to create a Performance Leadership System. Failure to complete one of
these steps before proceeding to the next will result in failure of the entire
system. The parts do not work in isolation; similar to a car: all parts are
necessary for the Performance Leadership System to operate effectively
and efficiently.

HOW IS MANAGEMENT SUCCESS CREATED?

13

Corporate or
Organizational
Vision
Goal setting
Organizational &
Departmental

STAGE 1
Performance
planning

Job Analysis
Job Design

Job Description with


competency evaluation
Job
Specification
STAGE 2
Performance
assessment
and review

Goal Setting
Measurement
Evaluation
(Appraisal)
Feedback

STAGE 3
Performance
development

Development
Plans

Exhibit 1.1 Steps in the Effective Performance Leadership System

Organizations are usually concerned with having the appropriate processes in place and sometimes they even train managers, but the outcomes,
unintended consequences, and signals from an employee perspective are
rarely examined.14 In this book, the employee perspective is considered, as
are the managerial and organizational perspectives, illustrated in Exhibit 1.2.
Feedback is essential to understand the results and signals37 because planned
implementation of any system may not yield expected outcomes.38
Perception causes attitudes and behaviors and their outcomes or, in our
case, employee performance.39 If employees perceive the process of employee
performance assessment and outcome decisions to be fair, they often reciprocate with positive outcomes, including organizational commitment.40
Organizational commitment or belongingness, as Maslow41 termed it,
creates an employee focus on organizational and personal goal alignment,
leading them to invest time and effort in their jobs.42 It also helps employees increase their performance and assist in other unrequired work, as
responses to belongingness.43

14

PERFORMANCE LEADERSHIP

Intended

Corporate Level
Enacted

Manager Level
Experienced

Employee Level

Shared
Employee
Perceptions
(Culture)

Organizational
Performance

Exhibit 1.2 Outcomes of Human Resource Management Practices


Source: Adapted from Nishii & Wright, 2008.

This is where a winwin strategy becomes beneficial for both organizations and employees. Mary Parker Follet, the renowned management
expert, explained that winwin is more than compromise, it is cooperation and collaboration. When people are engaged in a joint effort, the
management and leadership become more powerful using power with
rather than power over.10

So Where Is the Proof that a Complete System of


Performance Leadership Works?
Appropriate Performance Leadership systems (under the name of performance management) have been shown to be a useful tool for managers
through both research and practice.44 The systems, when properly and
totally employed, allow managers to:
Manage employee performance,
Develop employee skills, and
Create a sustainable competitive advantage.

HOW IS MANAGEMENT SUCCESS CREATED?

15

Appropriate use of these systems increases attraction and retention of


human resources (tangible assets) and their knowledge (intangible assets) to
the firm, as well as reducing rates of turnover.45 It provides cost savings and
increased profits through performance and productivity improvements.44
Martinez,46 in her case study of an electric company, cites increased
manager and employee focus on company goals as the #1 benefit from
using such a system. She stated that the firm was able to align operational
and strategic objectives. As with the Performance Leadership System, all
employee tasks are openly focused on the firms goals. In this case study,
the author reports that, as a side benefit, the firms reputation was also
improved. Other benefits Martinez found include business improvement,
increased customer satisfaction, and increased employee satisfaction.
Other research results also found benefit in the discussions about goals
and objectives between managers and employees, and a focus on resources
needed to complete tasks effectively and efficiently.47
Research as well as practical experience is used in this book to demonstrate how the Performance Leadership System works and to discuss the positive outcomes achieved using the system. But the bottom line for managers
is that few, if any, of the fad performance appraisal systems have worked in
isolation, and there is definite support from research and practical experience
to show that this one does. The Performance Leadership System presented
in this book works only when all of the steps are used inthe correct sequence:
You cannot pick and choose the parts of the system that you want to use
you must use it all, from start to finish. It takes time to use the Performance
Leadership System, particularly when first starting to implement it. H
owever,
the benefits are enormous and create a culture that emphasizes:
Lessening the time spent on performance issues, after
implementation,
Increased productivity, and
Increased satisfaction of both the manager and the employee.
The system works for any level in the organization, including the
general manager or chief executive officer in a profit or nonprofit organization. In fact, one of the reasons for chief executive officer failures is that
there is rarely an understanding of the job duties and outcomes by those

16

PERFORMANCE LEADERSHIP

who oversee that position (such as a board of directors, stockholders,


or other stakeholders of the organization). Therefore, monitoring chief
executive and other officer performance becomes increasingly difficult,
resulting in such things as the banking collapse, the automobile industry
collapse, and ethical problems as with Enron.
In the final chapter, the issue of organizational culture is outlined.
Culture determines the way that we do things around here, and leaders
are responsible for the culture of the organization and/or department.
Culture is not thoroughly discussed in this book, but we recommend
Camerons and Scheins work in the area.48
Example 1.1
Christina walked in the door and went straight to her desk, finding three receiving documents piled one on top of another. What is
this? she asked Jose.
You were late again, he said. I had to do the receiving, as usual.
Arent you supposed to be here at 8? Why are you always late?
Its only 8:15, Christina replied. And whats the big deal anyway. I always work over when Im late. I dont think you should be
making such a big deal out of it.
Mark heard the conversation from his office, went into the warehouse, and suggested that they both get back to work. Christinas lateness had come to the attention of his boss through gossip; clearly
Mark had to do something. Jose and Christina were two of the best
workers that he had ever seen, but Christinas continual late arrivals
meant that Mark wasnt seen as an effective manager by his boss or
subordinates.

What Is the Problem Here? How Can Performance


Leadership Help in this Situation?
Clearly, the problem had not been dealt with appropriately. Had
Christina been asked to change her pattern of behavior early, it might not
have become an issue. As it was, it had been brought to the attention of

HOW IS MANAGEMENT SUCCESS CREATED?

17

Marks boss, making him look ineffective to everyone. The Performance


Leadership System ensures that:
1. The requirements for arriving to work on time would have been
linked to the organizational and departmental goals.
2. Late arrivals would have been marked and the employee counseled
on the first and second occurrences for feedback and development
plans. Reasons, root causes, and resolutions should be discussed.
3. Appropriate measures would have been taken with the third and
subsequent occurrences.
Offers to assist in the underlying problem would have been offered,
if the underlying cause can be assessed. In some cases, this might be the
Employee Assistance Program. In this particular case, it might be someone offering to purchase an alarm clock. In some cases, the employee
might not wish to share the underlying cause; therefore, it is up to the
employee to solve the problem alone or suffer appropriate consequences.
It may be a personal issue, such as dropping a child off at day care or
school and trying to rush to work. The employee and the manager can
work together to find an answer, such as finding a day care closer to work
or one that opens earlier. The manager might officially change her hours
of work, making Christinas arrival 15 or 30 minutes later than it is now.
With thought, multiple alternatives can be generated and an appropriate
solution found, based on the root cause and feedback.

Notes
1. We did not use real names or incidents here. These are experiences
that we have had or stories that our students, colleagues, and clients
tell us. They are primarily meant as an introduction to the topic to
be discussed.
2. Whetten & Cameron, 2016.
3. Spriggs & Barnes, 2015.
4. Conger & Kanungo, 1988.

18

PERFORMANCE LEADERSHIP

5. Antonakis & House, 2002; Judge, Piccolo, & Ilies, 2004; Keller,
2006.
6. Cropanzano & Wright, 2001.
7. Bennett, 1998; Martinko, Gundlach, & Douglas, 2002.
8. Thau, Bennett, Mitchell, & Mars, 2009.
9. McGregor, 1960.
10. Mele, 2006.
11. Markle, 2000.
12. Likert, 1961, elaborated upon in Hauenstein, 2011.
13. Holland, 2006.
14. Farndale & Kelliher, 2013.
15. Culbert, 2008.
16. Flynn & Stratton, 1981.
17. Rock, Davis, & Jones, 2013.
18. Gardner, Moynihan, Park, & Wright, 2001.
19. Aguinis, 2013.
20. Clausen, Jones, & Rich, 2008.
21. Baldrige Performance Excellence Program (http://www.baldrigepe
.org/; http://asq.org/learn-about-quality/malcolm-baldrige-award/
overview/overview.html; http://www.nist.gov).
22. Moynihan & Pandey, 2010.
23. Fletcher, 1993, quoted by Ahmed & Kaushik, 2011, p. 102.
24. http://www.cipd.co.uk/hr-resources/factsheets/coaching-mentoring
.aspx
25. Drucker, 1993.
26. http://www.druckerinstitute.com/2013/07/measurementmyopia/
27. Coens & Jenkins, 2002.
28. Simsek et al. 2012, p. 49.
29. See for example: Coens & Jenkins, 2002; Markle, 2000.
30. Deming, 2000, p. 102.
31. Culbert, 2010.
32. Hansen & Keltner, 2012; Steelman & Rutkowski, 2004;
Wrzesniewski, LoBuglio, Dutton, & Berg, 2013.
33. See, for example, Cropanzano & Wright, 2001; Taris & Schreurs,
2009; Wrzesniewski, LoBuglio, Dutton, & Berg, 2013.

HOW IS MANAGEMENT SUCCESS CREATED?

19

34. Jemielniak, 2014; Morse & Weiss, 1955; Ross, Schwartz, & Surkiss,
1999.
35. Herzberg in his book (1966) and article (2003).
36. University of Southern Florida (http://fcit.usf.edu/assessment/basic/
basicc.html).
37. Haggerty & Wright, 2009.
38. Barney, 2001; Nishii & Wright, 2008; Wright, Gardner, Moynihan, &
Allen, 2005.
39. Erdogan, 2002.
40. Blau, 1964; Eisenberger, Huntington, Hutchison, & Sowa, 1986;
Masterson, Lewis, Goldman, & Taylor, 2000; Robinson, Kraatz, &
Rousseau, 1994; Whitener, 2001.
41. Maslow, 1943, 1954.
42. Cohen, 1992; Fedor, Caldwell, & Herold, 2006; Lease, 1998;
Mathieu & Zajac, 1990; Mowday, Steers, & Porter, 1979.
43. Blau, 1964; Guest, 1987; Organ, 1990.
44. See for example, Lussier & Hendon, 2013.
45. Allen, Bryant, & Vardaman, 2010; Daniel, 2014.
46. Martinez, 2005.
47. See for example, Ukko, Tenhunen, & Rantanen, 2007.
48. See for example, Cameron & Quinn, 2011; Schein, 2014.

Index
Absolute system, 83
Aguinis, Herman, 6, 34, 80
Amani, Mo, 11, 22, 37, 66, 112
American Management Association
survey, 97
Association to Advance Collegiate
School of Businesses
(AACSB), 58
Behavioral approach
example, 87
for measuring performance,
8184
tools for, 8586
Biases, 43
British Chartered Institute Personnel
and Development, 8
Certified Management Accountant
(CMA), 58
Certified Public Accountant
(CPA),58
Coaching process, 8
Comparative system, measurement
of,8283
Competencies, 8182
Contextual performance, 22
Critical incident, 4243
Critical task behavioral monitoring
system, 84
example, 88
Declarative knowledge, 22
Delivery stage, steps in feedback,
101103
Deming, Edward, 10
Differentiating competencies, 82
Documentation, 9091
Drive: The Surprising Truth about
What Motivates Us, 2425
Drucker, Peter, 89, 73

Employee
appraisal, 98
evaluation, 4, 6, 102
managing of, 2
motivation, 97
positive feedback, 96
self-evaluation, 98
Employee Assistance Programs
(EAP),26
Employee perspective
feedback after evaluation, 95
goal setting, 69
job analysis, 33
job descriptions, 47
leadership style, 1
management style, 1
performance, 21
performance appraisal, 79
Equal Employment Opportunity
Commission (EEOC), 99
Expectancy theory, 27
Feedback
annual or periodic, 9798
definition of, 96, 103
effective, 99
employee perspective, 95
manager
after evaluation, 9697
perspective, 9596
preparation for, 100
simple, 105
steps in giving, 99104
ways of, 9899
Follett, Mary Parker, 3, 14
Forced distribution, 83
Goal setting, 6976
employee
motivation, 7071
perspective, 69

132 INDEX

manager perspective, 69
methods of, 7172
SMARTER, template, 75
unexpected consequences of, 7476
ways of, 7274
Hoshin Kanri, 7374
Human resource management
department, 105
outcomes of, 14
versus personnel department, in
Performance Leadership, 113
The Human Side of Enterprise
(McGregor), 34
Incentives, 2324
Indicators, 82
Interpersonal facilitation, 22
Interview method, 4041
Job
activities, 35
components, 48
dedication, 22
definition of, 35
elements of, 35
enlargement, 49
enrichment, 49
performance, 710
scope of, 44
Job analysis, 33
critical questions in, 4041
definition of, 3537
to design a job, 44
employee perspective, 33
information gathered, 4344
manager perspective, 33
methods for, 3943
need of, 34
steps in, 3739
Job descriptions, 4854, 115
benefit of, 5354
employee perspective, 47
example, 5557
manager perspective, 47
need of, 4748
purpose of, 48
template, 5152
three-step, 50

Job design
definition of, 44
need of, 34
using job analysis, 44
Job specifications, 5465, 115
definition of, 54
example, 6164
need of, 4748
template, 5960
Leadership
definition of, 1
styles, 1
employee perspective, 1
manager perspective, 12
Management by objectives (MBO), 73
Management style, 1
employee perspective, 1
as issue, 2
manager perspective, 12
Manager perspective
feedback after evaluation, 9596
goal setting, 69
job analysis, 33
job descriptions, 47
leadership style, 2
management style, 2
performance, 21
performance appraisal, 79
Maslows hierarchy of needs, 2425
Mentoring process, 8
Motivation, 23
internal process, 11
Multisource feedback. See 360-degree
evaluation format
Observation method, 41
Occupational Information Network
(O*Net), 48
Organizational citizenship behavior.
See Contextual performance
Organizational culture, in Performance
Leadership, 112113
Pathway to behavior, value of, 2526
Performance
contextual, 22
definition of, 2128

INDEX
133

employee perspective, 21
manager perspective, 21
processes leading to, 25
task, 2223
Performance appraisal, 910, 91
documentation, 9091
employee perspective, 79
manager perspective, 79
need of, 1011
Performance Leadership System,
role of, 90
Performance evaluation
360-degree format, 8889
behavioral approach, 8184, 8586,
87, 88
fit in Performance Leadership
System, 7980
Performance Leadership System,
role of, 90
results approach, 84, 88
trait approach, 8081
Performance Leadership
Style, 24
Performance Leadership System, 34,
48, 115
appraisal/evaluation, role in, 90
benefits of, 15
circular nature of, 36
creating and sustaining, 7
feedback. See Feedback
functionality of, 1416
goal setting. See Goal setting
job analysis. See Job analysis
job descriptions. See Job
descriptions
job performance, analyzing and
measuring, 710
job specifications. See Job
specifications
as management style, 24
performance appraisal. See
Performance appraisal
performance appraisal, need of,
1011
performance evaluation. See
Performance evaluation
performance measurement, 1114
steps in, 1213
uses of, 47

Performance Leadership, 22
issues in
organizational culture, 112113
personnel versus human resource
management, 113
personorganization fit, 114115
problem solving using, 115117
time, 113114
top management support, 110
trust, fairness, and justice,
110111
problem solving using, 1617,
2831, 4546, 6567,
7677, 9192, 105107
Performance management, 24
Person-determined changes, 3839
Personnel versus human resource
management, in Performance
Leadership, 113
Personorganization fit, in
Performance Leadership,
114115
Preparation stage, steps in feedback,
99101
Procedural knowledge, 2223
Productivity, 21
Raters, 82
Results approach, for measuring
performance, 84, 88
Self-actualization, 24
Simple rank order, 83
Situation-determined changes, 39
Skills, knowledge, and abilities
(SKAs), 48
SMARTER goals, 75, 103, 104
The Smartest Guys in the Room: The
Amazing Rise and Scandalous
Fall of Enron, 115
Stretch goals, 70, 74
Task performance, 2223
Team goals, 72
360-degree evaluation format, for
measuring performance,
8889
Threshold competencies, 82
Time-determined changes, 38

134 INDEX

Time, in Performance Leadership,


113114
Top management support, in
Performance Leadership, 110
Trait approach, for measuring
performance, 8081
Transitional stage, steps in feedback,
103104

Trust, fairness, and justice, in


Performance Leadership,
110111
Two-way communication, 97, 99
Validity, definition of, 12
Work sampling, 42

OTHER TITLES IN THE HUMAN RESOURCE MANAGEMENT


AND ORGANIZATIONAL BEHAVIOR COLLECTION
Fostering Creativity in Self and the Organization: Your Professional Edge
by Eric W. Stein
Designing Creative High Power Teams and Organization: Beyond Leadership
by Eric W. Stein
Creating a Pathway to Your Dream Career: Designing and Controlling a Career Around
Your Life Goals by Tom Kucharvy
Leader Evolution: From Technical Expertise to Strategic Leadership by Alan Patterson
Followership: What It Takes to Lead by James H. Schindler
The Search For Best Practices: Doing the Right Thing the Right Way by Rob Reider
Marketing Your Value: 9 Steps to Navigate Your Career by Michael Edmondson
Competencies at Work: Providing a Common Language for Talent Management
by Enrique Washington and Bruce Griffiths
Manage Your Career: 10 Keys to Survival and Success When Interviewing and on
the Job, Second Edition by Vijay Sathe
Youre A Genius: Using Reflective Practice to Master the Craft of Leadership
by Steven S. Taylor
Major in Happiness: Debunking the College Major Fallacies by Michael Edmondson
The Resilience Advantage: Stop Managing Stress and Find Your Resilience
by Richard S. Citrin and Alan Weiss
Success: Theory and Practice by Michael Edmondson

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